For example, in July 2001, there were 1,183 permits pulled but they occurred in only two counties--759 in Arapahoe and 424 in Denver. In other words, if developers had ulled their permits in June or August of last year, July of 2001 also would have had zero permits.
In any case, experts cheered the year-to-date drop.
Craig Stack, an apartment broker with CB Richard Ellis, says that the drop in permits, which reflects future construction activity, will keep a lid on supply and allow owners to curtail incentives such as free rent faster.
Apartment broker Al Ray of the Al Ray Cos., notes the overbuilding of apartments has largely occurred in some submarkets, such as the areas such as Parker, east of Interstate 25.
"The population hasn't quite caught up to the building there, yet," Ray tells GlobeSt.com. "But it will. There's still lots of room to build office buildings in places like Meridian, and when the economy comes back, the office workers will fill the apartments. The southeast corridor is a nice place to live with good schools."
Townhome and condominium permit activity also is down a total of 29.6% in the first seven months of the year, falling to 2,376 permits from 3,375 through July 2001, according to the Denver HBA.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
